Cap Rate Calculator

Evaluate real estate investments with capitalization rate analysis.

Calculate

Cap Rate Risk

0%

Property Value

0

NOI (Annual)

0

GRM

0x

Monthly NOI

0

Cap Rate Benchmarks

3-5%

Prime/Core

Low risk, gateway cities

5-7%

Core+

Stable, secondary markets

7-10%

Value-Add

Moderate risk, upside potential

10%+

Opportunistic

Higher risk, higher return

Documentation

Understanding Cap Rate

Cap Rate = NOI ÷ Property Value × 100

Property Value = NOI ÷ Cap Rate × 100

NOI = Gross Income - Vacancy - Expenses

💡 Pro Tip

Cap rate doesn't include mortgage payments or taxes. It measures the property's return independent of financing.

Key Terms

  • NOI: Income minus operating expenses (before debt service)
  • GRM: Gross Rent Multiplier = Price ÷ Annual Gross Rent
  • Cap Rate: Unlevered return on property value

Last Updated: February 2026 • Cap rates vary significantly by property type and location.

Coursera AI Professional CertificateSponsored